Fauji Cement : Transmission of Quarterly Accounts for the Period Ended 30th September 2023

1st

Quarterly 2023-24

Report

Contents	F C C L
1
	First Quarterly Report 2023-24

AUJIAUJI

CEMENT

2

4

6

8

610

118

129

13

14

22

Company Information

Directors' Review

Condensed Interim Statement of Financial Position Condensed Interim Statement of Profit or Loss (Un-Audited) Condensed Interim Statement of Comprehensive Income (Un-Audited) Condensed Interim Statement of Cash Flows (Un-Audited) Condensed Interim Statement of Changes in Equity (Un-Audited) Notes to the Condensed Interim Financial Statements (Un-Audited) Jama Punji Information

CompanyInformation					F C C L
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					First Quarterly Report 2023-24
Board of Directors
Mr. Waqar Ahmed Malik				Chairman
Mr. Qamar Haris Manzoor				Chief Executive / MD
Dr. Nadeem Inayat					Director
Maj Gen Naseer Ali Khan, HI(M), (Retd)		Director
Syed Bakhtiyar Kazmi				Director
Mr. Sami ul Haq Khilji				Independent Director
Ms. Maleeha Bangash				Independent Director
Ms. Naila Kassim					Independent Director

Company Secretary	Supply Chain Management Department
Brig Abid Hussain Bhatti, SI(M), (Retd)	Syed Kamran Hassan
Fauji Towers, Block-III, 68 Tipu Road,	GM (Supply Chain Management)
Chaklala, Rawalpindi	Tel No. [phone]
Tel No. [phone]	Fax No. [phone]
Fax: [phone]	Email: [e-mail]
Email: [e-mail]

Chief Financial Officer	Human Resource Department
Brig Mir Ameer Ali, SI(M), (Retd)
Mr. Omer Ashraf	GM (Human Resource & Admin)
Tel No. [phone]	Tel No. [phone]
Email: [e-mail]	Fax No. [phone]
Marketing & Sales Department	Email: [e-mail]
Brig Aziz ul Hassan Usmani, SI(M), (Retd)
GM (Marketing & Sales)
4th Floor, AWT Plaza, The Mall, Rawalpindi
Tel No.	[phone],
Fax No.	+092-051-5528963-64,
[phone]
Email: [e-mail]

AUDITORS	Email for E-Filling & E-Services
A.F.FERGUSON & CO.	Email: [e-mail]
Chartered Accountants,	Production Locations
74-East, 2nd Floor, Blue Area,
Jinnah Avenue, P.O Box 3021,	Fauji Cement Company Limited
Islamabad-44000	Near Village Jhang Bahtar,
Tel: [phone]	Tehsil Fateh Jang, District Attock
Fax: [phone]	Tel Exchange: [phone],
Website: www.pwc.com/pk	Fax No.	[phone]
Legal Advisors	[phone]
M/s ORR Dignam & Co Advocate	Near Wah Railway Station Tehsil Taxila,
Marina Height, 2nd Floor,	District: Rawalpindi
109 East Jinnah Avenue,	Tel No.	[phone],
Islamabad	Tel No.	[phone]
Tel No. [phone]
Fax No. [phone]	Nizampur (Village Kahi)
	District: Nowshera Pakistan
Shares Registrar	Tel No.	[phone],
M/s Corplink (Pvt) Limited	Tel No.	[phone]
Wings Arcade, 1-K, Commercial,
Model Town, Lahore	Greenfield expansion Zinda Peer,
Tel No. [phone] &	district Dera Ghazi Khan
[phone]
Fax No. [phone]	Registered Office
Email:[e-mail]	Fauji Cement Company Limited
	Fauji Towers, Block III, 68 Tipu Road,
	Chaklala, Rawalpindi
	Tel No.	[phone],
		[phone]
	Fax No.	[phone]

Website http://www.fccl.com.pk

CompanyInformation	F C C L
3
		First Quarterly Report 2023-24
	Audit Committee
	Ms. Maleeha Bangash	Chairperson
	Maj Gen Naseer Ali Khan, HI(M), (Retd)	Member
	Syed Bakhtiyar Kazmi	Member
	Ms. Naila Kassim	Member
	Brig Abid Hussain Bhatti, SI(M), (Retd)	Secretary
	Human Resource & Remuneration (HR&R) Committee
	Ms. Naila Kassim	Chairperson
	Dr. Nadeem Inayat	Member
	Mr. Sami ul Haq Khilji	Member
	Brig Abid Hussain Bhatti, SI(M), (Retd)	Secretary
	Investment Committee
	Dr. Nadeem Inayat	Chairperson
	Mr. Qamar Haris Manzoor	Member
	Maj Gen Naseer Ali Khan, HI(M), (Retd)	Member
	Mr. Sami ul Haq Khilji	Member
	Brig Abid Hussain Bhatti, SI(M), (Retd)	Secretary
	Environmental, Social and Governance (ESG) Committee
	Ms. Maleeha Bangash	Chairperson
	Maj Gen Naseer Ali Khan, HI(M), (Retd)	Member
	Mr. Sami ul Haq Khilji	Member
	Mr.Ahmed Saeed Khan	Secretary

Bankers

• United Bank Limited
• Allied Bank Limited
• Bank Al-Falah Limited
• Habib Bank Limited
• MCB Bank Limited
• Meezan Bank Limited
• Askari Bank Limited
• Standard Chartered Bank (Pak) Limited
• National Bank of Pakistan
• Silk Bank Limited
• Bank of Punjab
• Faysal Bank Limited
• Bank Al-Habib Limited
• Al-BarakaBank Pakistan Limited
• Bank Islami Pakistan Limited
• Habib Metropolitan Bank Limited
• JS Bank Limited
• Bank of Khyber
• SME Bank Limited
• SAMBA Bank Limited
• First Women Bank Limited
• Summit Bank

Directors'Review	F C C L
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	First Quarterly Report 2023-24
	Directors' Review

The Board of Directors are pleased to present the 1st quarterly review along with Un-Audited Financial Statements for the quarter ended September 30, 2023.

Economic Overview

Q1 saw an increase in exports and decrease in current account deficit. The Rupee showed substantial gains against the USD on the back of administrative actions, which can help, provide relief in the form of lower fuel prices. As inflows improve, we are seeing some ease in imports of raw material for all businesses.

With growth projected around 2% for FY 24 the major challenges remain the all-time high inflation at 30% and interest rates at 21%. Although, large-scale manufacturing sector underperformed during the period as compared to last year but the cement sectors performance was better with higher domestic and export dispatches.

Cement Industry and Company's Performance

Industry dispatches in Q1 were 11.9 million tons as compared to 9.6 million tons in the same period last year, an increase of 24% (YoY). Break up of domestic and exports is as under:

			(Quantity in million tons)
	Q1 FY 24	Q1 FY 23		Variance (%)
Local sales	10.1	8.6		17
Export sales	1.8	1.0		80
Total	11.9	9.6		24

Q1 dispatches of the company were 1.34 million tons as compared to 1.07 million tons of the same period last year, an increase of 25%. Both local and export sales improved during the period, detail is as under:

(Quantity in million tons)

Local sales

Export sales

Total

Q1 FY 24	Q1 FY 23	Variance (%)
1.15	0.96	20
0.19	0.11	73
1.34	1.07	25

Exports to Afghanistan have shown considerable improvement YOY.

Financial Performance

During Q1 net revenue increased by 38% as compared to same period last year. This is mainly attributable to better retentions, higher despatches and devaluation of PKR. On cost side, cost optimization initiatives taken by the management like higher usage of local coal and alternative fuels, own captive generation and optimization of fixed cost contributed towards achieving the overall results. The Company earned net profit of Rs. 2,614 million as compared to Rs. 2,315 million in the same period last year, an increase of 13% (YoY), with a net profit ratio of 13% compared to 16% YoY due to increase in Financial cost post expansion.

ESG

As a company we are committed to sustainability by striving to protect bio diversity by adopting environment friendly practices, promoting corporate social responsibility and engaging in transparent communication with our stakeholders to play our part in building a better tomorrow.

Outlook

Domestic dispatches are expected to be positive in Q2 with slight seasonal dip towards the end of the quarter. Exports to Afghanistan have shown significant increase in Q1, and if the border situation remains unchanged then FY 24 will be a better year in respect of exports as compared to last year.

Directors'Review	F C C L
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	First Quarterly Report 2023-24

D.G. Khan Expansion

Greenfield expansion at D.G. Khan is expected to be completed by Q2 FY 24 thereby increasing the production capacity of the company and giving it access to new markets.

The Directors of the company express their deep appreciation to the valued shareholders, customers, financial institutions, government departments, dealers, contractors, foreign & local suppliers for their support and cooperation. The Directors would also like to express their appreciation to all the employees and management of the company for their hard work resulting in a positive outcome for the quarter.

On behalf of the Board of Directors

Waqar Ahmed Malik	Qamar Haris Manzoor
Chairman Board of Directors, FCCL	Chief Executive & Managing Director
Rawalpindi
24th October 2023